N.Y. Banking Law § 713: Application process to receive license to engage in the business of student loan servicing

§ 713. Application process to receive license to engage in the

business of student loan servicing. 1. Upon the filing of an application

for a license, if the superintendent shall find that the financial

responsibility, experience, character, and general fitness of the

applicant and, if applicable, the members, officers, partners, directors

and principals of the applicant are such as to command the confidence of

the community and to warrant belief that the business will be operated

honestly, fairly, and efficiently within the purpose of this article,

the superintendent shall thereupon issue a license in duplicate to

engage in the business of servicing student loans described in section

seven hundred ten of this article in accordance with the provisions of

this article. If the superintendent shall not so find, the

superintendent shall not issue a license, and the superintendent shall

so notify the applicant. The superintendent shall transmit one copy of a

license to the applicant and file another in the office of the

department of financial services. Upon receipt of such license, a

student loan servicer shall be authorized to engage in the business of

servicing student loans in accordance with the provisions of this

article. Such license shall remain in full force and effect until it is

surrendered by the servicer or revoked or suspended as hereinafter

provided.

2. The superintendent may refuse to issue a license pursuant to this

article if he or she shall find that the applicant, or any person who is

a director, officer, partner, agent, employee, member, or substantial

stockholder of the applicant:

(a) within the last ten years prior to the date of application, has

committed any act involving dishonesty, fraud, deceit, or has been

convicted of, or pleaded nolo contendere to, a crime directly related to

the qualifications, functions, or duties related to servicing student

loans, provided that any criminal conviction be evaluated consistent

with article twenty-three-A of the correction law;

(b) has had a license or registration revoked by the superintendent or

any other regulator or jurisdiction;

(c) has been an officer, director, partner, member or substantial

stockholder of an entity which has had a license or registration revoked

by the superintendent or any other regulator or jurisdiction; or

(d) has been an agent, employee, officer, director, partner or member

of an entity which has had a license or registration revoked by the

superintendent where such person shall have been found by the

superintendent to bear responsibility in connection with the revocation.

3. The term "substantial stockholder", as used in this section, shall

be deemed to refer to a person owning or controlling directly or

indirectly ten per centum or more of the total outstanding stock of a

corporation.